Below are the key highlights from his interview with DW:
1. Firm Commitment to Ukrainian Expansion
- No War-Related Delays: Rheinmetall’s plan to build a third production facility in Ukraine remains on track, independent of ongoing hostilities.
- Broader Strategy: Papperger had previously mentioned plans for at least four factories in Ukraine.
2. Capacity and Bureaucracy Insights
- Scaling Up Production:
- Rheinmetall is currently managing large orders for new equipment and is prepared to double its capacity within 12–15 months if additional orders come in. - Bureaucratic Contrast:
- Surprisingly, setting up factories in Germany has been faster than in Ukraine.
- Papperger noted that German authorities have “practically eliminated” red tape, enabling Rheinmetall to secure permits “in just a few weeks.”
- In contrast, despite constructive cooperation with Ukraine’s Ministries of Defense and Industry, the process of registering a joint venture (with Rheinmetall holding a controlling stake) took several months.
3. Production Timelines and Targets
- Ammunition Production Plant:
- Completion pushed to 2026 due to “delays” in Ukraine’s administrative processes. - Missile Attacks:
- According to Papperger, these do not significantly disrupt operations, as Rheinmetall can prepare for them.
4. Post-War Outlook
- Increased Demand:
- Papperger anticipates that even if the war ends, production volumes will increase due to rising defense budgets.
- German Defense Minister’s plan to boost defense spending to 3% of GDP (an estimated €120 billion annually) could unlock €70–75 billion each year for defense investments.
Rheinmetall’s continued expansion in Ukraine, despite logistical and bureaucratic challenges, reflects a long-term commitment to bolstering the country’s defense industry and capitalizing on future defense spending both in Ukraine and Germany.
